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Case Study - Reading the Tea Leaves at Tea and More: Resolving Complex Supply Chain Issues

Abstract

Tea and More is facing growing pains from its rapid expansion over the last decade. The case provides a summary of the challenges faced by the company in the areas of supply chain management, marketing plans, the creation of economic value and the development of a long-term strategy for profitable growth.

Discussion Questions

1. What can we do about lost sales due to poor customer service by outside "contract" sales staff?

2. How can we restore the attractiveness and power of the TAM brand for major cus- tomers so they aren't lured away by low-cost, low-quality competitors?

3. How can we minimize "stock outages" and other inventory problems caused by unpredictable customer ordering patterns and the continuing difficulty of getting faster production and delivery from EML in London?

4. How can we reduce collection time from 54 days to less than 40 days without alien- ating the very customer base TAM is trying to attract and retain?

5. What decisions should we make regarding experimentation with new tea varieties, such as the "Christmas Mint" tea that fell flat last season? Can we afford to continue such experiments? Can TAM afford to stick only to its basic teas and not compete in the "new and improved" tea market so heavily advertised by competitors?

6. What haven't we thought of? Where else can financial advantages and process efficiencies be achieved?

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